EURUSD: Potential Bullish Garltey within the Consolidation

FX:EURUSD   Euro / U.S. Dollar
Lot’s on my trading radar today gang. In fact out of the 11 pairs in my trading portfolio, I’m either involved or have pending orders on 7 of them. ( EURUSD             , EURJPY             , GBPUSD             , AUDUSD             , GBPJPY             , NZDUSD             , EURAUD             ).

The chart you’re looking at displays a potential bullish Gartley pattern on the EURUSD             . This pair has been in consolidation as of late which has been a positive thing for pattern traders, nailing profits on both the previous bullish cypher and bearish bat patterns that were offered. Will this next potential pattern meet the same fate? I hope so, but honestly there is no way to tell. Remember traders we don’t have any control over the markets, they do what they want when they want. The only thing that we can control is ourselves and how well we execute our trading plan.
The green/red boxes on the side will give you an idea of where I’m looking for initial stops and targets. The risk reward on this particular pair is slightly above 1:1 so unless we have a perfect completion, I’m expecting an inverse risk/reward going forward.

If you’re around this Friday I’ll be doing a Live Google             Hangout in my trading room. With the Non-Farm Employment release coming I have no intentions of trading so I figured we could all hang out and do a little Question & Answer. If you’re interested just head over and subscribe to my youtube channel. It will be THIS FRIDAY at 8am New York Time. https://www.youtube.com/channel/UCVveEks3MWZqOsvzTF_LGQg

Akil Stokes
Chief Currency Analyst at Trade Empowered
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good trade, hope you took it!
+1 Reply
Akil, I enjoy watching some of the stuff you do. I'm really a huge skeptic of harmonic patterns. Maybe you can explain why they help your trading. My opinion is that any M or W pattern is just range bound movement back to some S/R level and the ratios don't matter at all. Do you really think institutional programs/traders are looking at bats and butterflys? Cheers and happy trading.
+1 Reply
Hey Johnson, . Advanced patterns are simply a strategy, just like a moving average cross system or say a trader that uses a combination of bollinger bands and stochastics. Institutions are not looking for these patterns at all, but their buying and selling action (since they can't enter the same as retail traders) is actually what forms the patterns in many cases. Hope this helps
I would add if you're a skeptic, and you know that in the back of your mind you have doubt in these types of patterns, then the last thing you want to do is trade them. A trader who doesn't have a 100% belief in their system/strategy is more likely to make mistakes and sabotage their results.
+2 Reply
I would just like to shoot in this: I have a friend who finished his masters degree in finance and economics a couple of years ago, and they were actually taught Bats, Gartleys and Butterflies. Food for thought?
That is actually the reason why I got interested in advanced patterns in the first place. I just started trading Bats a few weeks ago on demo, and I must say I'm having great success with them so far.
Last week I didn't have a single loss. Just a long string of winners, and some breakeven. Of course, a week is not long enought to be representative, but I'm gaining more and more belief in them as a strategy for consolidating markets.
And I love that you can just set a pending order at the D completion. Suits my lifestyle perfectly as I don't have to stay glued to my computer to be able to trade.
thejohn74 PRO Kjetil_Johannesen
I think the reason they may work is because they established irregular rangebound price action that ends near the edge of the range. For example, a bullish gartley the final leg extends beyond the previous leg, so it will be seen as oversold by traders expecting it to end at the extreme of the previous leg, and nearly at support of the initial leg, so scale in bulls will start to take positions...so it is "in harmony" that way. The fibs and exact ratios have nothing to do with it (just my opinion). I haven't seen any satisfactory explanation on why they are supposed to work, from Carney, or anyone... Thought maybe Akil knew something more specific. As long as they work for you, keep using them!
+1 Reply
I agree, the Gartley pattern was originally in use way before we had fibonacci tools or even related fibonacci to trading at all. Specific ratios were added in order for us to "identify it" but if you take all of that away and break it down to the basics, it's really nothing more than specific type of complex pullback giving traders an opportunity to jump in and a cheap price in comparison to the original move.
looks like another bat pattern
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